CMCI is a public-private initiative designed to support the scale up of private finance flows for low carbon technologies, solutions and infrastructure in developing economies by:
- Developing a common understanding amongst policy makers of why and how public sector action can help mobilise private capital and encourage new markets in low carbon investments
- Demonstrating the potential impact of public sector action by developing and testing tailored financial and policy tools in specific partner country case studies to mobilise private capital
Recognising the urgency for building institutional and organisational learning and capacity around these issues if they are to work in practice, CMCI can play a catalytic role in moving this agenda forward more rapidly than if it were left to governments or the market alone. This is driven by a combination of:
- UK Government leadership, in turn facilitating engagement with other governments and international processes on the private climate finance agenda
- Financial innovation expertise from some of the most significant institutions in the finance and investment sectors to help identify financial solutions to the barriers identified, as well as scope for capital investment
- Improved prospects for delivery given the potential to deploy UK public climate finance through the International Climate Fund (e.g. through funding of risk mitigation tools).
CMCI approach
This work is led by the UK Department of Energy and Climate Change and delivered through a high-level Steering Group and two Working Groups which include key decision makers from UK Government and some of the most significant institutions in the finance and investment sectors.
Working Group 1
Chaired by Anglia Ruskin University, has developed a set of principles for policy makers to enable a common understanding of what constitutes ‘investment grade policy’, with the aim of leveraging climate-friendly private finance. A set of Working Draft principles will be published in early 2012 for comment, discussion and testing amongst stakeholders.
Working Group 2
Chaired by the World Economic Forum, has fostered partnerships with developing country governments to evaluate barriers, and then design and test new financing models to address these challenges in country, with the aim of scaling up private capital flows. The exact focus and support provided by CMCI will be tailored to partner-country contexts and opportunities.
CMCI members come from the following institutions
Anglia Ruskin University, Aviva, Accenture, ATP, BP Pension Trustees, BNP Paribas, BTPS Barcap, Black Rock, Brookings Institute, Climate Change Capital, Clinton Climate Initiative, Climate Group, CDKN, Chatham House, Climate Bonds, CMIA, Department for Energy and Climate Change, Department for International Development, Deutsche Bank, EIB, EBRD, Emerging Power Group, E3G, ECN, Friends Life, GGGI, Goldman Sachs, HSBC, Her Majesty’s Treasury, Holden, InfraCo, IFC, IIGCC, Innovator Capital, Institute of Actuaries, Jupiter, KPMG, Legal & General, London Stock Exchange, London Bridge Capital, Lloyds, Mumbai Stock Exchange, Merrill Lynch BoA, Morgan Stanley, NEF, ODI, OECD, PIDG, PWC, Prince of Wales Foundation, RBS, SDCL, S&P, Shell, Standard Bank, Standard Chartered, SARi, SwissRe, Soros Foundation, Schroders, Towers Watson, UKSIF, USS WRI, Ward Associates, Willis Re, World Bank World Economic Forum, Yell.